The WSL champions will play the first leg of their tie at home on March 3 or 4, with the second leg scheduled for Madrid a week later.
Atletico beat Manchester City 3-2 on aggregate in the round of 16 last season before losing to Barcelona in the quarter-finals.
The other English team left in the competition, Manchester City, have been drawn against Fiorentina and also have first-leg home advantage.
Fiorentina were beaten 6-0 on aggregate by Arsenal in the Champions League last season.
The 16 sides were divided into two groups of eight – four seeded teams and four unseeded – for the draw, with no club being able to meet a side from their own association. Covid-19 travel restrictions were also taken into account.
Holders Lyon, record seven-time winners and bidding for a sixth successive title, face Danish side Brondby.
Two-time winners Wolfsburg meet Norwegian side LSK Kvinner and Barcelona play Fortuna Hjorring, of Denmark.
The final will be played at Gothenburg’s Gamla Ullevi stadium on May 16.
Full draw: Wolfsburg v LSK Kvinner, Barcelona v Fortuna Hjorring, Rosengard v St Polten, BIIK-Kazygurt v Bayern Munich, Manchester City v Fiorentina, Sparta Prague v Paris St Germain, Lyon v Brondby, Chelsea v Atletico Madrid.
Additional reporting by PA.